Laurentian Bank (TSX:LB) is a Montreal-based company that provides financial services to personal, business, and institutional customers in Canada and the United States. Shares of this regional bank stock have dropped 25% in 2022 as of close on October 28. The stock is down 27% year over year.
Canada’s financial sector has faced major challenges in the form of rising interest rates and a weakening economic environment. Many top bank analysts have predicted that a recession of varying intensity will hit the Canadian and global economy in 2023. History tells us that this is a great time to snatch up equities at a discount. However, you must have a strong stomach to weather the volatility.
This bank released its third quarter fiscal 2022 results on August 31. In the first nine months of 2022, Laurentian Bank reported adjusted net income of $179 million or $3.88 per diluted share – up from $163 million or $3.51 per diluted share in the year-to-date period in fiscal 2021. Laurentian Bank remains confident that it can deliver on its 2022 financial targets in the face of a very difficult macroeconomic environment.
Laurentian Bank’s loans increased by $2.9 billion or 9% to $36.4 billion since October 31, 2021. Meanwhile, total deposits climbed 16% to $26.7 billion.
Shares of this regional bank stock currently possess a solid price-to-earnings ratio of 23. It offers a quarterly dividend of $0.45 per share. That represents a very strong 5.8% yield.
